Village of Haverstraw v. Ray River Co., Inc.

Court:	Appellate Division, Second Department
Citation:	2021 NY Slip Op 08191
Plaintiff/Respondent:	Village of Haverstraw (“Village”)
Defendant/Appellant:	Ray River Co., Inc. (“River”)

Facts: Village condemned River’s property in 2007. River contested the sum offered as just compensation for the property. Originally, Village offered $1,190,000, but River contended that the property was worth $13,100,000. Both parties agreed that the highest and best use for the property was the construction of a multifamily housing complex. The parties disagreed as to the number of feasible residential units for the property and the per unit price. As a result, there was a nonjury trial of this matter. At the trial, the Village’s expert opined that no more than 80 units could be built, as there was sewage and construction costs to be considered. River contended that 131 units, including a five-story building could be constructed. The lower court awarded River a judgment for $6,810,000, and the Village appealed.

Holding: The Appellate Division, Second Department overturned the judgment on appeal and remanded the matter back to the lower court for a new determination as to the value of the parcel. The Appellate Division, Second Department found that River’s appraiser had failed to produce factual data to support the conclusions as to value, and had failed to take sewage and construction costs into account in determining value.

Submitted by: Philip Sanchez, Esq.(www.spnylaw.com)

Precis:Davida S. Scher